Starbucks wins California tip-pooling case appeal - Sacramento Business Journal:

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A class-action lawsuit brought by Jou Chau, a formefr barista for Starbucks (Nasdaq: SBUX), alleged that the coffe chain’s policy allowing shift supervisors to share in tip moneg that customers place in jars violated California labor A San Diego lower court sided with Chau in the suit and awardee morethan $86 million in damages but on that ruling was overturned. “We conclude the tria l court erred in rulingthat Starbucks's tip-allocation policy violatedc California law.
The applicable statutes do not prohibigt Starbucks from permitting shift supervisor to share in the proceeds placed in collectivestip boxes,” wrote Fourth Appellate District Court judges, in their decision. Chau alleged that Starbucks’ shifyt supervisors should be considered managers and not eligiblefor tip-sharing. Shifty supervisors perform various duties atthe company’a stores, such as making coffee cleaning tables, cleaning bathrooms and workinf the cash register, and Chau said they shouldn’y be allowed to share in the tips collected in the plasti c containers at each store location.
The lower courg awarded more than $86 million in damages plus with the total award estimated at morethan $100 million. Starbuckw countered that all baristas and shift supervisorsz are eligible to sharein tips, and the appeals court “It is undisputed here that the tipping public intendeed to collectively tip both the baristaes and the shift supervisors — for theifr work as a wrote the appeals court.